Honolulu - City Council Bill 85 amd Bill 89 fiasco

[Aunty0]

I wanted to start a conversation with fellow hosts in Honolulu, HI.   How do you feel about the recent bills?

Here's my response to another thread....

"Im not too worried....  Bill 85 and 89 (has anyone read it yet?) have legalese that contradict each other.   While the City approved it... the mayor hasn't signed it into law yet.   He may lean to sign Bill 89.   

Besides, the City doesn't have the manpower to cite homes.   In order to be cited, a huge burden of proof lies on the City... a contract (airbnb payment/receipt) has to be found as evidence among other things.  People going in an out of a house is not grounds for citation.  The City has to have a huge burden of proof to sue.  They can't even get records from Airbnb!  So don't buy into the scare mongering/propaganda.  

So I tell my guests that  if anyone(city inspector) approaches them ... first tell that person to get off my private property and have the conversation on public property (street/sidewalk)

then feign ignorance, not say anything,  and pretent to not know what Airbnb is and at worst say they're just house sitting.

Besides,  an attorney will sue the City based on the contradiction and that'll be tied up in court for a long while.  That lawyer is gonna walk away with a pretty penny on the backs of the Hawaiian taxpayers..

It seems that this is all political theater to have us look away from the failed rail, failed prosector dept,  and 'Save Sherwoods' scandals.  

I'm surprised how ignorant Hawaiian citizens are.... they can write formal letter of complaints to the Hawaii State Bar to get rid of these corrupt judges and lawyers.  Watch dog groups in Boston, Massachusetts and across the country do this on the daily.  Hawaiian politicians are only "getting away" with it because Hawaiian citizens don't seem to know how public office works or hold their own officials accountable."

[Chill-and-Relax0]

---

@Lauren615 wrote:

You can definitely change your listing to a 30 day minimum.  But the only potential guests who will see it are those with a visit date range of 30+ days.  There are not many fish in that pond.  

---

Not entirely; according to a FAQ posted on a City website, even when the unit is available only for 30+ days but posted prices are per night, it still will be considered a short-term. 

[Lauren615]

Correct.  I had a lengthy, frustrating exchange with Airbnb about this (and saved the transcribed exchange.)  I have emailed DPP about this.  As soon as someone puts in dates, the nightly rate changes to a monthly + rate.   But for all the cities that are facing the limitations we're facing, it's ridiculous that Airbnb won't change this technical issue.

[Cara88]

I changed my listing to 30 day minimum for now and are slowly cancelling my remaining guest for the year and some for next year.  I was hoping things would change. I have a few returning guests that will be disappointed.

[Kimo2]

The 30 day minimum will not protect you from fines if Airbnb continues to list a nightly price.  At Friday nights meeting in Kailua, the DPP rep and the industry lawyer said the listing of a nightly price, even if you only book 30 days or more, is a violation.

[Brian991]

https://mailchi.mp/8c2c89b5c02c/ostra-call-the-mayor-let-home-know-what-this-bill-will-do-to-you?e=5...

This is from OSTRA, a like minded alliance. Thought I'd share...

[Craig-and-Mia0]

Thank you Brian. I just called and told him he lost my vote. I will share with others. 

[Kathleen49]

I found this on this website:

What is the license or registration number field?

Some cities require that hosts obtain a license or registration number in order to list their homes on Airbnb. This field allows hosts to display that number directly on their listing to comply with local laws. It is important to note that not all cities require that hosts register, nor are all hosts required to register, so the absence of a number is not necessarily indicative of a non-compliant host.

In some cities you might also see “City registration pending” in this field. This means that the host has started the registration process with a city, but has not been granted a license or registration number yet. These listings are still perfectly fine to book.

You might also see “Exempt” in this field. This means that the host’s listing is exempt from the city’s registration process for reasons determined by the city. These listings are also still perfectly fine to book.

SO, I have added similar wording to my listing...."Oahu B & B permit pending"

  .

[Cara88]

The DPP has not issued any B&B licenses since 1989 and will not start taking applications until 10/2020. That means we cannot host from 8/2019 until get get one of the 1700 permits they will allow.  No "Exempt"  no "premit pending" nothing like that.  

---

[Kimo2]

Kathleen,  If you get spotted, you'll get a violation and potential fines.  There is no such thing as "bnb permit pending on Oahu"

[Brian991]

http://honoluludpp.org/Portals/0/LandUsePermitsDivision/STR%20FAQ%207-15.pdf

     Aloha all.... here's an updated FAQ from the DPP. 

     A bit more clarity but we're still up the creek. 

     Put calls and emails in to ur  councilman to do something about this 

[Nijel0]

Hi I received this email from the department of planning and permitting Honolulu this morning the link she has provided clearly shows in a light red colour the resort zone that are permitted to host short term rentals.

Hello,

Generally, if the property has an address along Ala Wai Boulevard, short term rentals are not a permitted use unless they have a NUC or has been established as a nonconforming hotel.  You can find parcel and zoning information on our website. 

http://cchnl.maps.arcgis.com/apps/webappviewer/index.html?id=31b9607333e94c64ba581461892f32e8

If you wish to have confirmation on nonconforming status of a particular property, please write into our department with a check of $300 payable to the City and County of Honolulu.

Best,

Joette P. Yago, AIA, NCARB

Urban Design Branch

Department of Planning and Permitting

650 South King Street, 7th Floor

[Renée48]

So what happens

 when we deactivate or snooze our account? I have bookings through midJanuary. Do we have to pay Airbnb cancellation fees on all of those? I would hope as Airbnb put it, these are “extreme circumstances” and we won’t be further penalized? 

[Lauren615]

 Call Airbnb and request that they cancel those reservations. They will ask you to message the guests first and then they will cancel from their end. There will be no penalty and you’re super host status will not be affected.

[Mark1666]

I just just recently became an Airbnb host and luckily bought a unit in a building that has an NUC permit. I will definitely benefit from the lack of competition as a host but will suffer as a frequent guest in other cities if this banning of strs becomes prevalent. I feel for the many of you who depend on your rental income, as I do,  to live in this very expensive state. And I also feel badly  for the many visitors who will lose their only affordable option to visit our islands. 

On another note, I find it totally absurd that the state wants to collect taxes on an acknowledged illegal activity. Will they be shaking down pimps, gambling dens, and drug dealers next? It’s probably easier to get civilized citizens to comply instead. An interesting question is if rents are forfeited to the city will the state return those taxes?

[Lauren615]

It seems crazy, but you were always supposed to pay taxes on income from illegal vacation renting.  Federal taxes, too - there's even a line for "income from illegal activities!"  So yes, gamblers and drug dealers are required to pay too!  Good luck with that.  

The city is going to discover that a lot more people were complying with the requirement to pay their GET and TAT. than they thought.   If there are 9,000 hosts who rent their places for $150/night for 21 days/month - that's $34 million in TAT alone.  Even if only half those hosts have been paying their taxes, that's gonna be a huge tax loss.  And that doesn't count GET which we also pay.